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3.3 Without prejudice to the generality of the foregoing grounds regarding the deletion of proposed adjustment of RS. 3,32,97,66,244/- on the transactions of intra-group services, whether the Hon'ble DRP has B G Exploration & Production India Limited V DCIT ITA No 1170/Del/2015 DCIT V B G Exploration & Production India Limited ITA No 1581/Del/2015 AY 2010-11 erred in directing the AO/TPO to drop the proposed adjustment of Rs. 80,13,26,441/-on the amount paid to the parent company ostensibly as allocation cost for joint acquisition of IT infrastructure and software.

With respect to the IT infrastructure services availed by the Assessee, it was submitted that Group company acquired and developed certain infrastructure software and software for the benefit of the group companies which included upgraded software, sophisticated email facility etc. These costs are located to the group company at cost based on allocation methodology decided on a group level and the same were capitalized the books of Assessee. The Assessee submitted the details of allocation and the copy of debit note along with supporting working. It was further submitted by the Assessee that the production sharing contract was approved by the government of India and any services received by the Assessee B G Exploration & Production India Limited V DCIT ITA No 1170/Del/2015 DCIT V B G Exploration & Production India Limited ITA No 1581/Del/2015 AY 2010-11 from its associated enterprise is required to be remunerated on cost and thus on that basis the services received by the Assessee are at arm's length. The Ld. Transfer Pricing Officer stated that:-

The Assessee also seems to have delayed submission with an intention to move the proceeding towards time barring date source TPO is not left sufficient time to investigate independently. The Assessee is asked to come out with reasonable working on its support expenditure.

14. From various email communications which have been submitted by the Assessee company it appears that the employees of the Assessee company have sought some IT related guidance which are in the nature of AMC or after sales service. Normally for AMC of any software network no one charges more than 10% of the IT network and software cost.

iii) IBI Chemature Limited This comparable has been selected by the Ld. Transfer Pricing Officer which is a joint venture company promoted in association with Swedish company to render basic engineering, detailed engineering and consultancy services in the field of petrochemicals, fine chemicals and chemicals, B G Exploration & Production India Limited V DCIT ITA No 1170/Del/2015 DCIT V B G Exploration & Production India Limited ITA No 1581/Del/2015 AY 2010-11 cosmetics, pharmaceuticals, industrial explosive and west acid recovery. The Ld. Authorised Representative submitted that The company generates income from provision of engineering services like designing and drawing, 3D modeling, piping and instrumentation diagram, smart plant instrumentation, process simulation, inspection services and erection supervision services, which are not similar to services provided by the Assessee. The company generates income from provision of engineering services and software services. It is further submitted that company has earned a high profit margin of 52.66% during the FY 2009-10. It was further stated that there is an existence of significant research and development cost to sales ratio for the FY 2009-10 is 5.41%. He further placed reliance on the decision of Delhi ITAT in case of iQor India Services Private Ltd. Vs ITO where in the Hon'ble ITAT held that the high end services involving special knowledge cannot be compared with the low end ITES services provided by the Assessee. We have carefully perused the annual accounts of the company, which are placed at page No. 93 -117 of the paper book. At page No. 94 of the paper book where review of performance of company is noted, it shows that company has employed highly trained technical staff and is also marketing these capabilities in the domestic as well as the overseas market. It further uses SMART plant foundation, which is software for bringing the technologies specific to several industries. It also has the new division in the form of B G Exploration & Production India Limited V DCIT ITA No 1170/Del/2015 DCIT V B G Exploration & Production India Limited ITA No 1581/Del/2015 AY 2010-11 research and technology Centre, which started functioning during the year. Looking to the assets employed by the company, It uses the computer software in the name of smart plant suite. Further during the year. It has incurred research and development expenditure of Rs. 11699720/- which was not there in the earlier year. Further, the company is also planning to use Smart plant foundation for integration of other smart plant tools. In view of this we agree with the argument of the Ld. Authorised Representative that this company is engaged in the business of high-end engineering services which is based and supported by the use of a specific technologies and huge research and development expenditure along with an R&D centre. In view of this, the functions performed by this comparable company are not comparable with the Assessee's functions. For this reason only, we direct the Ld. Transfer Pricing Officer/AO, rejecting this comparable, to exclude the same for the comparability analysis.